SOX Full Form In English
SOX stands for the Sarbanes-Oxley Act, which is a United States federal law enacted in 2002. It was introduced to protect investors from fraudulent financial reporting by corporations. The act was passed after major corporate scandals such as Enron and WorldCom, which shook investor confidence. SOX mandates strict reforms in financial practices, internal controls, and corporate governance for publicly traded companies. It ensures transparency, accountability, and accuracy in financial statements.
SOX Full Form In Hindi
SOX का मतलब सार्बेन्स-ऑक्सले अधिनियम है। यह एक अमेरिकी संघीय कानून है, जिसे 2002 में लागू किया गया था। इसका उद्देश्य निवेशकों को कंपनियों द्वारा किए गए वित्तीय धोखाधड़ी से सुरक्षा प्रदान करना है। यह अधिनियम एंरॉन (Enron) और वर्ल्डकॉम (WorldCom) जैसी बड़ी कॉर्पोरेट घोटालों के बाद पारित किया गया था, जिन्होंने निवेशकों का विश्वास हिला दिया था। SOX सार्वजनिक रूप से कारोबार करने वाली कंपनियों के लिए वित्तीय प्रक्रियाओं, आंतरिक नियंत्रण और कॉर्पोरेट प्रशासन में सख्त नियम लागू करता है।
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Frequently Asked Questions
What is the purpose of SOX?
It ensures corporate accountability and protects investors from fraudulent financial practices.
Who needs to comply with SOX?
Publicly traded companies in the United States must comply with SOX regulations.
When was SOX enacted?
It was enacted in 2002.
What are the penalties for non-compliance?
Severe fines, imprisonment of executives, and legal actions can be enforced.
Does SOX apply outside the USA?
SOX mainly applies to US companies, but foreign companies listed on US stock exchanges must also comply.
Conclusion
The Sarbanes-Oxley Act (SOX) is a landmark law in corporate governance. It strengthens financial transparency, reduces fraud, and restores investor confidence. For any company operating publicly in the USA, understanding and adhering to SOX is essential.
